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In-House Financing

What is 'In-House Financing'

In-house financing is a type of seller financing in which a firm extends customers a loan, allowing them to purchase its goods or services. In-house financing eliminates the firm's reliance on the financial sector for providing the customer with funds to complete a transaction.

Explaining 'In-House Financing'

The automobile sales industry is a prominent user of in-house financing. Many vehicle sales rely on the buyer taking a loan, in-house financing allows the firm to complete more deals by accepting more customers. Whereas banks or other financial intermediaries might turn down a loan application, car dealerships can choose to lend to customers with poor credit ratings.


Further Reading


Spatial lock-in: Do falling house prices constrain residential mobility?
www.sciencedirect.com [PDF]
… The typical residential housing transaction is financed largely with borrowed money … they find that counties that experienced the largest increases in leverage tended to experience the sharpest rise in loan defaults and … Figure 3 Household leverage and the run-up in house prices …

Financial integration, housing, and economic volatilityFinancial integration, housing, and economic volatility
www.sciencedirect.com [PDF]
… The typical residential housing transaction is financed largely with borrowed money … they find that counties that experienced the largest increases in leverage tended to experience the sharpest rise in loan defaults and … Figure 3 Household leverage and the run-up in house prices …

The local geographies of the financial crisis: from the housing bubble to economic recession and beyondThe local geographies of the financial crisis: from the housing bubble to economic recession and beyond
academic.oup.com [PDF]
… The typical residential housing transaction is financed largely with borrowed money … they find that counties that experienced the largest increases in leverage tended to experience the sharpest rise in loan defaults and … Figure 3 Household leverage and the run-up in house prices …

Trends in park tourism: Economics, finance and managementTrends in park tourism: Economics, finance and management
www.tandfonline.com [PDF]
… The typical residential housing transaction is financed largely with borrowed money … they find that counties that experienced the largest increases in leverage tended to experience the sharpest rise in loan defaults and … Figure 3 Household leverage and the run-up in house prices …

Islamic House Financing: A Critical Analysis and Comparison with Conventional MortgageIslamic House Financing: A Critical Analysis and Comparison with Conventional Mortgage
papers.ssrn.com [PDF]
… The typical residential housing transaction is financed largely with borrowed money … they find that counties that experienced the largest increases in leverage tended to experience the sharpest rise in loan defaults and … Figure 3 Household leverage and the run-up in house prices …

The rise in mortgage defaultsThe rise in mortgage defaults
www.aeaweb.org [PDF]
… The typical residential housing transaction is financed largely with borrowed money … they find that counties that experienced the largest increases in leverage tended to experience the sharpest rise in loan defaults and … Figure 3 Household leverage and the run-up in house prices …

Why publicly-financed health insurance schemes are ineffective in providing financial risk protectionWhy publicly-financed health insurance schemes are ineffective in providing financial risk protection
www.jstor.org [PDF]
… The typical residential housing transaction is financed largely with borrowed money … they find that counties that experienced the largest increases in leverage tended to experience the sharpest rise in loan defaults and … Figure 3 Household leverage and the run-up in house prices …

The relationship between house prices and house purchase loans: The Spanish caseThe relationship between house prices and house purchase loans: The Spanish case
www.sciencedirect.com [PDF]
… The typical residential housing transaction is financed largely with borrowed money … they find that counties that experienced the largest increases in leverage tended to experience the sharpest rise in loan defaults and … Figure 3 Household leverage and the run-up in house prices …



Q&A About In-House Financing


How can sellers benefit from using in house finance?

Sellers can benefit by completing more deals by accepting more customers who might not be able to get loans elsewhere.

What does in-house financing eliminate?

In-house financing eliminates the firm's reliance on the financial sector for providing customers with funds to complete transactions.

Who are prominent users of in-house financing?

The automobile sales industry is a prominent user of in-house financing. Many vehicle sales rely on buyers taking loans, and in house finance allows car dealerships to lend to customers with poor credit ratings.

What is in-house financing?

In-house financing is a type of seller financing.